The Indian Builders Association is outraged at what they are calling an unjustified rise in cement prices. India is the second largest producer of cement in the world, with cement playing a vital role in its economy; however the market has been sluggish of late causing prices to rise. The price of cement has risen from Rs.350 to Rs.280-290 per bag in the Tiruchi district and Mumbai saw a 30% cost increase to Rs.275 for a 50 kg bag. Industry insiders expect the costs to continue growing.
India has experienced a slowing in the economy, directly affecting the cement market. Major cement companies, such as Ambuja and ACC, have recently announced disappointing 3Q13 results due to lack of demand. Furthermore, an increase in prices for raw material, fuel and freight costs have forced cement manufacturers to put up prices in order to boost net earnings.
The Builders Association have noted a big impact upon construction in India, including housing and infrastructure projects, that have been forced to stop. As one of India’s largest industries, employment in construction is also set to suffer. The BAI has appealed to the Supreme Court. They do not want to pass on the price rise to consumers and are insisting upon the setting up of a governing body to monitor and regulate cement prices.
Edited from various sources by Rosalie Starling
Read the article online at: https://www.worldcement.com/asia-pacific-rim/25102013/indian_builders_association_act_against_increase_in_cement_prices_340/